İTO President Avdagiç: "We have 7 superior sectors that make Türkiye hopeful in the China+1 strategy"

Istanbul Chamber of Commerce (ITO) President Şekib Avdagiç evaluated developments on the business world's agenda at the Chamber's May Assembly meeting. Noting that global uncertainty also has a serious impact on investments, İTO President Şekib Avdagiç said, "As uncertainty increases, investors with reduced risk appetite are turning to safer havens. Turkey should be prepared to eliminate these negative developments. If we are negatively affected by capital flows, this could increase pressure on the TL and make external financing conditions more difficult. On the other hand, potential shifts in the supply chain seem to create significant opportunities for Turkey. Indeed, Turkey stands out as an important alternative production center in the search for global companies to reduce their dependence on China."

Pointing out that a supply chain strategy defined as China+1 or +1 has recently come to the fore, Avdagiç said that this strategy has gained momentum especially due to increasing geopolitical tensions, the COVID-19 pandemic and strict lockdown policies in China.

"Plus 1 candidates are Türkiye, Vietnam, India, Indonesia, Bangladesh and Poland"

Avdagic, reminding that analysts have pointed out that the US-China trade war will further strengthen this trend, said, “Turkey has the opportunity to benefit from this strategy to the maximum extent. Experts note that other countries that can benefit the most from the China+1 strategy, which aims to ‘reduce supply chain risk, avoid geopolitical risks, provide logistics advantage and reduce costs’, are Vietnam, India, Indonesia, Bangladesh and Poland. We can actually be the most prominent of these 6 countries. Because we have serious advantages. Most importantly, we have a young and qualified workforce along with the advantage of the Customs Union, developed industrial infrastructure and geographic proximity to Europe.”

Şekib Avdagiç, who stated that Türkiye is undoubtedly one of the leading candidates for the China+1 strategy, continued as follows: "But we must not forget this. World companies are implementing the China+1 strategy, so they will come running to us. No, we also have things to do for this. What needs to be done is clear: We must improve the investment environment; we must strengthen our institutional capacity and digital infrastructure, we must focus on target sectors in investment incentives and pave the way for logistics investments."

"7 superior sectors that make us hopeful to benefit from the China+1 strategy"

Avdagiç stated that when we look at the main sectors, there are 7 superior sectors that make the Turkish business world hopeful to benefit from the China+1 strategy.

Şekib Avdagiç listed them as follows:

"The ideal geographical location for fast delivery (fast fashion), the ability to produce at European standards and the quality of being a strong alternative for European brands moving away from China provide significant opportunities for our textile and ready-to-wear sector. Secondly, duty-free access to the EU market, the potential for high-quality intermediate goods production give our electrical and electronic products sector an advantage. Thirdly, the strong main industry and supply industry infrastructure, the growing capacity in batteries, software and cable systems, logistics and cost advantages bring significant opportunities for our automotive industry.

Fourth, competitively priced manufacturing and engineering capabilities, ideal infrastructure for regional production and assembly bases, and growing R&D and innovation capacity are advantages for our machinery and industrial equipment sectors.

Fifth, proximity to Europe and the large domestic market, renewable chemicals and the potential for cooperation in the Green Transformation make our chemical and petrochemical sector superior.

Sixth, strong production capacity in fresh fruits and vegetables, dry food and processed products, the advantage of non-GMO production, and opportunities to access the Middle East market with halal certified products provide opportunities for our food and agriculture sector.

Finally, the advanced level reached in domestic and national defense and the cooperation opportunities with Western manufacturers thanks to NATO membership offer great opportunities for the defense aviation industry."

UAV

Editor: News Center